Kazakhstan to enable Islamic windows in conventional banks
Regulatory reforms aim to expand Shariah-compliant financial services in the country
ASTANA, Kazakhstan (MNTV) — Kazakhstan is poised to take a significant step in the development of its Islamic financial sector.
The country’s Agency for Regulation and Development of the Financial Market (ARDFM) has announced a new draft law on banks and banking activities that will allow traditional banks to offer services under the Islamic window format.
Dauren Salimbayev, a senior official at ARDFM, discussed the initiative during recent roundtable discussions.
According to the draft law, Kazakhstan’s Islamic banking regulations will now extend to these Islamic windows, enabling conventional banks to offer services based on Islamic principles.
The new law introduces various provisions, including qualification requirements for managerial personnel involved in Islamic banking, and rules for financial provision, such as capitalization increases and profit management.
The regulations also aim to ensure the application of prudential standards to banks engaging in Islamic transactions.
Notably, banks will be required to maintain separate financial records for Islamic business activities, while also adhering to minimum disclosure requirements.
Madina Abylkassymova, Chair of the ARDFM, confirmed that the draft law will be submitted to parliament in September 2025, with a projected adoption date set for after January 2026.
This announcement follows an earlier statement on June 27, 2024, by ARDFM Deputy Chair Olzhas Kizatov, who noted that Kazakhstani banks would soon be permitted to establish Islamic windows within their branches.
The initiative is designed to further promote the development of Islamic finance in Kazakhstan.
Kazakhstan has been building its Islamic financial sector over the years.
Notably, on January 14, 2025, the country launched Central Asia and Caucasus’ first Shariah-compliant exchange-traded fund (ETF) under the International Trading System’s Shariah index.
Earlier, the establishment of Al Hilal Bank in 2010 marked a historic milestone, integrating Kazakhstan into the global Islamic financial system.
With these regulatory reforms, Kazakhstan aims to broaden its financial market offerings, strengthen investor confidence, and position itself as a key regional hub for Islamic finance.
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